Tax Deductions Many Don’t Know Exist—But Should Be Taking Advantage Of
With the holiday season nearing an end, it is time to set our sights on the upcoming new year. And with each New Year comes the thoughts of getting ready for tax season. Each year, Americans scramble to do their taxes, in an effort to see if they will receive a refund. In their rush, they sometimes overlook possible deductions. Here are a few deductions you may or may not currently know about, and can take advantage of this coming tax year.
Premiums For Health Insurance
The IRS is sympathetic to the costs of insurance premiums and significant medical expenses. That is why the cost of medical expenses, in some cases, is allowed. The amount must exceed 10 percent of your adjusted gross income before you can take advantage of the itemized deduction in 2019. If you are self-employed and are responsible for providing your own health insurance, you may, in fact, be eligible for a 100 percent deduction of the cost of your premium.
Gifts To Charity
Almost all taxpayers know that they are able to deduct any donations or contributions given to a charitable organization. However, many are not making the most of this deduction. Any out of pocket expenses for charitable contributions apply as well. Such as if you make cupcakes for a fundraiser, you are permitted to deduct the cost of the ingredients purchased and used to bake the cupcakes. Make sure that you save all of your receipts and itemize any costs, just in case you are audited.
If you need to hire a babysitter to watch your children while you donate time to work for no pay for a charity that the government recognizes, you may be able to deduct the cost. It has been ruled, by the federal Tax Court, that you may include the cost of a babysitter under a charitable contribution on your return. However, you much document that the babysitter was performing their duties while you were volunteering.
Everyone knows that the loss of a job can be somewhat traumatic, and the costs of finding a new one can quickly add up. By adding up your expenses, such as gas to drive to interviews or the costs of printing resumes and itemizing your deductions, your deductions that exceed 2 percent of your adjusted gross income are permitted as a deduction.
Are any of these suggestions a possible deduction for you this coming tax year?